The launch of the new Kia Seltos was not just about making headlines for the Korean automaker but was an important part of its strategy for India. After all, this midsize SUV was the second best selling model for Kia in the first half of 2023 with 30,244 units.
Hardeep Singh Brar, Vice President & Head – Sales & Marketing, Kia India, told Mobility Outlook that Seltos contributed to about 50% of total exports for the company. It remained the top contributor in FY23 with 135,885 units despatched to over 100 countries.
With the new Seltos, Kia will target the domestic market more aggressively while export levels will pretty much remain at the same levels, said MyungSik Sohn, Chief Sales Officer.
Brar added that Seltos sales in CY22 were around one lakh units and fell marginally to 5,000-6,000 units during the last two months as a result of the new model transition phase. The goal now is to sell over 10,000-12,000 units each month which will then lead to Seltos emerging as Kia India’s top seller.
Tae-Jin Park, MD & CEO, Kia India, said the midsize SUV segment was likely to see a compounded annual growth of 5%. Brar echoed this optimism while pointing out that this product category grew by 25% last year compared to 16% seen in lower-level SUVs. The company is also looking at increasing its annual production to 3.6 lakh units this calendar, up from three lakh units in CY22.
New Growth Strategy
The new strategy, Kia 2.0, will focus on the core pillar of growth while also targeting new segment entries, customer-centric innovation and network expansion. According to Sohn, while products like the Carens gave Kia India the confidence to enter niche/low-volume segments, the new strategy will focus on strengthening the established product categories.
SUVs and MPVs will remain top priority given their growth over the last five years. At that point in time, SUVs were 30% of the total market and have since grown to 47% while MPVs are up from 5% to 8%. Sohn reiterated Kia would steer clear of micro-SUVs. Plans are also underway to relaunch the latest generation of Carnival which was discontinued due to the RDE norms.
Brar said young customers would be the core of Kia’s base — this was 25-35 years in the case of the outgoing Seltos and is now 21-35 years for the new avatar. Technology would play a bigger role too given that 45% of Seltos sales are for higher-end models with connected features. The new model has now more to offer such as the Hinglishcommand which will also draw buyers from rural India.
It also gets ADAS level 2 features with 17 advanced adaptive options like lane keep assist which will be a key USP since it attracts more customers. “We do have models at the top end without ADAS but do expect greater traction with models equipped with these features,” Sohn said.
Kia will also increase the number of touchpoints from 300 to 600 by the end of 2028 and will eventually look at increasing its market share from 7% to 10% in the next five years.
Electric Template
As for electric vehicles, Kia launched the EV6 in May last year and actual sales ended up being four times more than the originally targeted 100 units for the first year. The carmaker had showcased its EV9 concept at the 2023 Delhi Auto Expo.
The global parent had announced in March 2022 that it would have 14 BEVs worldwide by 2027. Brar said while the EV6 was already in the market with EV9 due to follow, the Indian arm was exploring the option of growing this basket. The India-centric e-RV will be launched in the mass premium segment and also available in ICE form.
From the company’s point of view, ICE will continue to play a role even while the share of EVs will grow. As for hybrids, Kia India believes that they “are for those who don’t have clear EV plans”. As Brar explained, “Our EV plans will take off from 2025 and introducing hybrid powertrains does not make sense.”
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